I was frustrated by this error when I am trying to reinstall Visual Studio 2017 after my visual studio got corrupted/failed during upgrade to 15.1 ( or after a previous installation failed due to low disk space).

There is a file called ‘state.json’ , in below mentioned path, which is creating this particular issue. 

%ProgramData%\Microsoft\VisualStudio\Packages\Instances\<instance> 

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Solution:

  • Delete/rename the folder as is or rename ‘state.json’ file to ‘something.json’ .

Found from : https://developercommunity.visualstudio.com/content/problem/2877/install-error-0x80131500-failed-to-deserialize-pac.html